How Insider Stock Buying Works

Each day, our insider trading system reviews and processes over 2,000 Form 4 filings. These filings are legally required reports that company insiders submit to the SEC, and the data is publicly available. Because of the volume of filings, identifying meaningful trades requires careful filtering and analysis.

We examine every detail, including:

• The industry and company involved
• The insider’s role or position
• Whether the transaction was a stock grant or part of an automatic purchase plan

Once the raw data is filtered, we apply advanced analytics built from nearly one million historical filings. This includes:

• Studying past performance patterns following insider buys
• Measuring probabilities and market correlations
• Identifying stocks with a strong likelihood of near-term movement

For each filing, we gather and evaluate 30+ unique metrics designed to highlight standout trades, giving you data-backed insights you can act on confidently.

Our main goal is identifying stocks likely to pop out of the open due to an insider trade filing. This pop can often lead to a 1% to 15% increase the next day.

You can use this data in two ways:

• For day trading: Spot stocks positioned for a quick move right after the market opens.
• For swing trading: Find companies that may be temporarily down but where insiders show confidence for long-term improvement.

Whether you’re trading short-term momentum or looking for recovery opportunities, our alerts help you act with data-backed confidence.

At the end of each trading day, you’ll receive an email detailing information about the insider transactions we’ve identified as significant. Some days (not often), we will not identify any promising insider trades. On other days, you will receive as many as 12.

Your daily email is simple, structured, and designed for quick review. It includes:

• Table 1: Key insider transaction details, including:
  • Purchase amount and stock ticker
  • Current trading volume (to gauge liquidity)
  • Historical performance ranking based on similar insider transactions
    
    
• Table 2: A deeper look at each stock’s past behavior, showing:
  • Average high and low prices after previous insider buys
  • Historical trends to help identify breakout points
  • Correlation data showing how the stock moves relative to the overall market — useful for diversification

The tables come with column headers that help explain what each column shows. You can quickly read through the table and see how much was bought, to what degree holdings increased, and the overall historical performance rating.